A Centralized Management Style, Where Major Decisions About a Foreign

question 22

True/False

A centralized management style, where major decisions about a foreign subsidiary are made by the parent company, results in an increase in agency costs.

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Definitions:

Internal Structure

Internal structure refers to the way in which an organization or system is arranged internally, encompassing the relationships between different components and how they are organized to function cohesively.

Division

A distinct operational unit within an organization, typically with its own strategy, resources, and objectives, often aligned by products, services, or markets.

Specialized Function

A specific task or role requiring a particular set of skills or expertise, often within a professional or technical domain.

Lowe's Companies, Inc.

An American retail company specializing in home improvement that operates a chain of retail stores across the United States and Canada.